How is amortization best defined?

Amortization is best defined as the process of spreading the cost of an intangible asset over its useful life. This method involves allocating the cost of the intangible asset, such as patents, copyrights, or trademarks, systematically over the period in which the asset is expected to generate economic benefits. The rationale behind amortization is to match the expense of the intangible asset with the revenue it helps to generate, thus providing a clearer picture of a company's financial performance.

In contrast, the other choices focus on different aspects of financial management. Analyzing the depreciation of tangible assets refers to a different concept, as it applies specifically to physical assets rather than intangible ones. Determining the market price of assets involves valuation strategies and market analysis, which is not related to the process of amortization. Similarly, calculating total equity concerns the net assets of a firm and its financial structure rather than the allocation of costs associated with intangible assets. Therefore, choice A accurately captures the essence of amortization.